PCS: Paulson Will Support Deutsche’s Improved Bid

By Tiernan Ray

Following a sweetened bid announced last night for MetroPCS (PCS) by Deutsche Telekom (DTEGY), which intends to merge PCS with its T-Mobile USA unit in a recapitalization, one of several shareholders who oppose the deal today reversed course and issued their support.

Paulson & Co. Inc., the largest MetroPCS shareholder, owning 36.3 million shares or 9.9% of the shares outstanding as of the record date, today stated that it appreciates the substantial improvement to the terms of Deutsche Telekom’s offer for MetroPCS. Paulson thanks Deutsche Telekom for its willingness to consider the views of MetroPCS shareholders and adjust the consideration to the benefit of all shareholders. Paulson believes the $3.8 billion reduction in debt combined with the 50 basis points reduction in interest rate are material improvements for MetroPCS shareholders and strengthen the pro forma company. While Paulson needs to review the revised proxy statement before making a final decision, Paulson intends to vote for the merger as restructured.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.